Property Market is going WILD

Professor Emeritus

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Remember when we were told how property owners were supposedly struggling during the pandemic?



When will the housing market cool off? The madness shows no signs of slowing - CNN
Ellen Coleman had never received so many offers on a house in her 15 years of selling real estate.

She listed a fixer-upper in suburban Washington, DC for $275,000 on a Thursday. By Sunday evening, she had 88 offers.

"The offers just kept coming," she said. "I felt like Lucy with the chocolates. I'm thinking, 'This is just out of control.'"

Of those 88 offers, 76 were all-cash, said Coleman, who works for RE/MAX Realty Centre. There wasn't even enough time for all of the bidders to visit the property. She said 15 offers were sight unseen.

The four-bedroom, 1,800 square-foot home sold for $460,000, nearly a 70% increase from the asking price.

In fact, the inventory of available homes for sale is now at a record low, driving competition and home prices ever higher across many regions of the country. With demand for homes remaining strong, it's hard to imagine when the market might become more affordable and that has left many buyers wondering whether they should act now or just wait it out.
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Property boom: US home prices surge at fastest pace on record
The median price of a single-family home climbed 14.9% to $315,000 in the fourth quarter. That was the biggest surge in data going back to 1990, according to the National Association of Realtors.

Prices rose in all 183 metros measured by the group and 161 had double-digit growth compared with just 115 of them in the third quarter.
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Housing Market Gains More Value In 2020 Than In Any Year Since 2005
After a record-setting year of home sales in 2020, the housing market still shows no sign of cooling off.

U.S. housing gained about $2.5 trillion in value in 2020 — the most in a single year since 2005, according to a new Zillow analysis. The full stock of U.S. housing is now worth $36.2 trillion.....

Zillow expects 2021 to be even stronger, possibly exceeding last year's $2.5 trillion gain. “Builder confidence, perhaps in reaction to the boosted demand, hit record highs and more homes are being built as a result,” said Zillow economist Treh Manhertz. “Add that together and you see why the housing market gained more than in any year since the Great Recession.”

According to the CoreLogic Buyer/Seller Market Indicator, which measures the ratio between sold price and list price, buyer competition reached a new peak nationally in October and November when the ratio climbed to 0.996 – the highest level since 2008, when the data series began.
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Home sales hit 14-year high in 2020, pushing prices to record levels - CNN
https://www.cnbc.com/2021/01/22/existing-home-sales-in-2020-were-highest-since-in-over-a-decade.html
Pandemic-driven demand sent total 2020 home sales to the highest level since 2006.

Still, even the most avid buyers are bumping up against barriers in today’s housing market. Record low supply and record high prices are limiting the exceptionally high demand.
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Housing Market Update: Home Prices Increased a Record 17%, Pending Sales Up 19%
Key housing market takeaways for 400+ U.S. metro areas during the 4-week period ending March 7:
  • The median home-sale price increased 17% year over year to $328,350, an all-time high. This is the largest increase on record in this data set, which goes back through 2016.
  • Asking prices of newly listed homes hit a new all-time high of $349,975, up 10% from the same time a year ago.
  • Pending home sales were up 19% year over year and up 3% from the four-week period ending February 7. In the two weeks since pending sales dipped during the winter storms over the 7-day period ending February 21, the weekly number of pending sales is up 17%.
  • New listings of homes for sale were down 17% from a year earlier.
  • Active listings (the number of homes listed for sale at any point during the period) fell 41% from 2020 to a new all-time low. This is the largest decrease on record in this data, which goes back through 2016.
  • 56% of homes that went under contract had an accepted offer within the first two weeks on the market, well above the 45% rate during the same period a year ago. This is another new all-time high for this measure since at least 2012 (as far back as Redfin’s data for this measure goes). During the 7-day period ending March 7, 59% of homes sold in two weeks or less.
  • 44% of homes that went under contract had an accepted offer within one week of hitting the market, up from 32% during the same period a year earlier. This is also an all-time high for this measure. During the 7-day period ending March 7, 48% sold in one week or less.
  • The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, increased to 99.8%—1.7 percentage points higher than a year earlier and an all-time high. During the 7-day period ending March 7, the ratio shot up to 100.1%, the first time on record since this data series began in 2016 that the average home has sold for above its list price nationwide.
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Basically any small-time property owner who was in financial trouble due to Covid, even if they didn't take advantage of all the mortgage-assistance and rent-assistance programs out there, could just flip that home right now for a massive profit. But for the most part they're NOT doing that and demand continues to outstrip supply cause the vast majority of those who own property appear to be doing just fine.

Meanwhile some people are still trying to fukk over unemployed families who can't even make their rent payments in the middle of a pandemic.

Hmmmm....
 
King Theo

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yea it crazy we bought our right before covid. and got a hell of a deal. our house would be 100-150k more now.

its cool in one hand but idk something about it doesnt feel right. this is in the city i heard its even crazier for a piece of shyt house outside of pittsburgh:yeshrug:. i hope to never have to bid above asking price for anything. if thats the case ionwantit:patrice:
 
Scholar

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Supply chains broke down. Companies thought there would be no demand. Prices of building a home increased (lumber futures have been wild). Thus, Low supply of housing on the market w. huge demand.
 
Scholar

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Housing market is extremely frothy but you have to ask yourself, if the market crashes will the gov step in to save homeowners. Lessons learned from 2008, the gov will bailout homeowners.

Housing market prices will continue to increase + we are about to see record GDP growth
 
dora_da_destroyer

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King Theo said:
hol up i just went thru the article. who are these many people with so much cash on hand to buy homes:mjcry:. shyt like that always blows my mind. guess i really aint about my money
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inheritance, gift/loan from mom & dad, in the bay area in particular - so many people have tons of stock compensation, sell off stock & end up with hundreds of g's on hand
 
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